The nice things about a flat tax are everyone’s got some skin in the game and those with the best tax accountants don’t get to pay less.
But it won't be the case. After it gets tinkered with, there will be a standard exemption/deduction that will still exempt many from paying taxes.
Theoretically true if you eliminate all deductions, although I'm sure good accountants could still manipulate "income" for businesses - large and small. As long as you allow deductions you'll have tax accountants.
Wrong, each household's first $50K is exempted from tax. Median household income in the US is $51969, so just under half the households pay nothing. We're already in a system like that. I'm all for fixing the tax code, but this doesn't give everyone some skin in the game.
Its a flat tax only that all income has the same tax percentage.... yet he goes down the rabbit hole with deductions, exemptions etc.
What he should propose is a 10% flat tax. No deductions. Everyone pays. EVERYONE. God only requires 10%, so that ought to be enough for the government too.
Everyone? I believe that no matter what the tax plan, there will always be exceptions for the protected class.
(Gibsme my E.I.T.C.!!!)
Those without skin in the game, currently about half of all taxpayers, may be a bit miffed at the thought of their tax bill going way up. How do you sell it to them?
The nice things about a flat tax are everyone’s got some skin in the gameTaxpayers would get to keep the deductions for home mortgage interest and charitable deductions under Paul’s plan, and would also not have to pay any payroll taxes. Plus, the gift and estate taxes would be scrapped, and the first $50,000 of a family of four’s income would be exempt from taxes.